Promote Her Business’ Promotion Dictionary

Instructions

At PHB, we believe that it’s important to grow your vocabulary as you’re growing your business. As you listen to our Promotion Pro interviews, we challenge you to use new terms at least 2 times in conversation with other people the same week you hear them. For if you don’t use them, you lose them!

Plus, increasing your vocabulary, will also increase the vocabulary of those around you – like power partners, clients and team members – who are listening to you as a role model, and this is a powerful side-effect.

Yes, it is appropriate and even recommended to practice using your new vocabulary – and applaud others for using it — on our private Promotion Pro Facebook Group.

What’s really great is that all marketing, business and sales terms are much more than just definitions. They are value-packed with the practical — why you should care about this term — and give you the specific interview, so you can listen to the replay and reference the term in context.

B

Branding

  • Definition:
    • “Branding is what people say about you when you are not in the room.” – Jeff Bezos, Founder and CEO of Amazon.com
  • Why You Should Care:
    • Branding aims to establish a significant and differentiated presence in the market that attracts and retains loyal customers” – BusinessDictionary.com
    • If you want to be the best in branding, you need to learn from the BEST in (And yes, that might mean the same corporations you may have left to start your business.)
    • World-class companies who’ve gone from start up to growing business to household names – companies like Barbie, Pepsi, Disney, Niki and Target – would tell you – branding isn’t an afterthought. Branding has been in the front of their mind since their inception; evolves as their business evolves, and is key to their sustainable success for generations of customers.
  • Refer to:
    • “Brand Yourself as THE BEST”– Josephine “Jos” Hanan, Founder/ “Chief Promote-HER”, Promote Her Business, JosephineHanan.com

Business Coach

  • Definition:
    • Is about TRANSFORMATION.  The real power of coaching is in asking questions that illuminate and allow the clients to discover something new and different for themselves.
  • Why You Should Care:
    • Hiring a Business Coach is not the same as hiring a Business Consultant. They are different roles and should have different expectations associated with them from a client perspective.
    • A Business Coach often helps clients discover their blind spots and keeps them accountable for winning at their goals, as they transform into their best selves.
  • Refer to:

Business Consultant

  • Definition:
    • Is usually an expert or a professional who provides professional or expert ADVISE in a particular area such as security, management, business, Accountancy , Law, human resources etc
    • By in large there are two types of consultants:
      • Internal consultant – someone who operates within an organization but is available to be consulted on areas of specialism by other departments or individuals (acting as clients)
      • External consultant – someone who is employed externally (either by a firm or some other agency) whose expertise is provided on a temporary basis, usually for a fee. As such this type of consultant generally engages with multiple and changing clients.
  • Why You Should Care:
    • The overall impact of a Business Consultant is that clients have access to deeper levels of expertise than would be feasible for them to retain in-house, and may purchase only as much service from the outside consultant as desired.
    • It is also important to keep in mind that just because you hire a Business Consultant, it doesn’t mean they have been trained in the specialized skill set and profession of Coaching. Being a Business Consultant is entirely different than being a Business Coach and needs to have different expectations from a client perspective.
  • Refer to:
C

Cash Flow

  • Definition:
    • Is a separate report and is not part of a business’ financial statement. Cash Flow describes all the cash flows into and out of the business. Its particular focus is on the types of activities that create and use cash, which are sales, investments, loans, grants, cash gifts, and financing.
  • Why You Should Care:
    • Knowing where you’re at with cash flow is important to know how soon you’ll have funds available to make investments or even pay-off already made investments.
  • Refer to:

Client Acquisition Cost (CAC)

  • Definition:
    • Client Acquisition Cost (CAC) refers to the resources that a business must allocate to acquire an additional customer. CAC is derived by dividing all the costs spent on acquiring more clients (marketing and advertising expenses) by the number of clients acquired in the period the money was spent.
  • Why You Should Care:
    • Your business needs to decide what the maximum cost of client acquisition will be — or how much is the most you’re willing to spend on marketing/advertising to attain each new client — so you can avoid losing money or spending more than you have. Overall, CAC is critical to calculating the clients’ value to the business and the resulting return on investment (ROI) of acquisition (aka is spending this much on a client worth it?).
  • Refer to:

Close Ratio

  • Definition:
    • Is the total number of leads you have versus the number of sales you closed.
  • Why You Should Care:
    • Your close ratio is an indicator of your overall sales efficiency. That’s because it shows the number of leads that convert into an actual sale.
    • Note: Your close ratio will be affected by the considerations:
      • Do you have cold or warm leads? Or maybe both?
      • Do you have qualified or unqualified leads? Or both?
      • Where are your leads residing in your funnel?
      • And are your leads referrals, are they purchased, or both?
    • If you take a deeper look at what the close ratio means, you should be able to get a feel for such things as: Your best marketing strategies, the most profitable geographical areas, and where your focus should be in terms of attracting new leads versus nurturing existing clients.
  • Refer to:

Content Marketing

  • Definition:
    • PHB’s favorite definition comes from the Content Marketing Institute: “Content marketing is astrategic marketing approach focused on creating and distributing valuable, relevant, andconsistent content to attract and retain a clearly-defined audience — and, ultimately, to driveprofitable customer action.”
    • Common types of content marketing include: Social Media Content, Case Studies, Blogs, eNewsletters, In-Person Events, Website Articles, Videos, Illustrations / Photos, White Papers, Infographics, etc.
  • Why You Should Care:
    • Having a strong content marketing strategy and understanding how to take your content to the next level is CRITICAL in terms of if:
      • Anyone ever opens your email or reads your blog
      • Remembers your brand
      • Clicks your call to action
      • Watches your video
      • Or makes a comment or shares
    • As a marketer/entrepreneur, it is your job to make sure your readers not only see you posted something, but that they feel like it’s worth their time. And in today’s highly busy, distracting world – that means not just writing something – but paying attention to the best practices in content marketing – so you can capture as much attention as your audience is willing to give you. Remember: the more attention your audience gives you, the more likely they are to do business with you.
  • Refer to:
    • “Content Marketing” interview series – Josephine “Jos” Hanan, CEO/Founder, JosephineHanan.com
D

Discretionary Income

  • Definition:
    • Is the income after expenses that has not been allocated for another use.
  • Why You Should Care:
    • Discretionary income lets you know if you are spending beyond your current profitability. Spending more than your profits means you will be at a loss and have to make additional cash investments into the business.
  • Refer to:
E

80/20 Rule

  • Definition:
    • “Here’s how the 80/20 rule applies to small business owners: 20% of what small business owners do every day actually produces 80% of their total revenue. In other words, there are only a few things that generate the vast majority of the revenue we make each day…
  • Why You Should Care:
    • Over years of working with business owners, we have discovered what makes up that 20% — of the 80/20 rule — that all of us should focus on exclusively. There are just five critical areas that every small business owner MUST focus on: Leads, Conversions, Transactions, Pricing and Profit.” — – Lynnea Hagen
  • Refer to:
    • “$10,000, 45 Minute Business Turnaround” interview series – Lynnea Hagen, International Speaker, Best Selling Author & President, Abundance Business Academy 
F

Financial Statement

  • Definition:
    • Snapshot of specific date and time on how the business is doing. It includes: 1) Balance Sheet 2) Income Statement (aka “profit loss”).
  • Why You Should Care:
    • Your financial statement, which is gives an overall snap shot, can be measured for things like profitability, growth, ROI etc.
  • Refer to:

Future Budget (F.B.)

  • Definition:
    • Future Budget needs is for instances where you will need to allocate a chunk of cash flow for growth such as hiring an employee or moving your facility.
  • Why You Should Care:
    • Understanding your future budget allows you to plan for expenditures so you don’t go negative in cash flow
  • Refer to:
M

Market Share

  • Definition:
    • Is the percentage of the market you and your company hold in a geographic area.
  • Why You Should Care:
    • What many small businesses don’t realize is that they can calculate their
      market share even if they’re not a big company. Let’s say you are a company that provides marketing services – like PHB does – then, all you need to do to figure out your market share is to determine the total number of possible clients in your geographic area. For example, to keep it simple, let’s say there are 100 businesses in San Jose that need marketing support. If you have 5 clients, then you have 5% of the market.
  • Refer to:
N

“Net-to-gross” Calculation

  • Definition:
    • Your gross profit = your total sales – cost of sales. If you’re a marketing company it’s all the sales you did this month minus the cost of production. Your net is your gross profit (total sales- cost) less all expenses (not related to your sales process).
  • Why You Should Care:
    • This calculation provides a snapshot of financial health. The calculation percentage of your net to your gross profit should be about 30% or more.
  • Refer to:
O

“Open Your Business Kimono”

  • Definition:
    • There’s a saying in the business world that when you are going to let someone in – in the background of your business – telling them the secrets — you’re “opening the business kimono.”
  • Why You Should Care:
    • The “Open Your Business Kimono” interview was inspired by a Japanese proverb: “Building a business with a plan is a dream. Building a business without a plan is a nightmare.” !
    • Yet, many entrepreneurs shy away from creating and updating their business plan, because “they’re afraid to ‘open their business kimono.’ They’re ‘afraid’ because there’s nothing there. The other reason is they are concerned that someone will steal their ideas and their secrets. Neither are reasons not to have a business plan.” – Doreen Milano, CEO, Visions to Excellence
  • Refer to:
    • “Open Your Business Kimono” (Strategic Business Planning) interview – Doreen Milano, CEO, VisionsToExcellence.com
P

Promotion 

  • Definition:
    • Something devised to publicize or advertise a product, cause,
      institution, etc., as a brochure, free sample, poster, television or radio commercial, or personal appearance.
  • Why You Should Care:
    • In the 1900’s, Virginia Wolf said “For most of history, anonymous was a woman.” Well, not anymore. At Promote Her Business, we want women – and their male allies – to go down in history!! Promotion allows us to be first of mind, which means more people will be more likely to be 1st to buy our PHB community’s products/services!
  • Refer to:
    • Why you wanted to join our Promote Her Business community:)

Promotion Partner

  • Definition:
    • Common definition: a fellow business owner who gives you referrals
    • PLUS PHB’s Extra-Value Added definition (fishing analogy)
      • Who fishes in the same pond (Market)
      • Who you like to fish with and vice-versa (Likability/Belief in Each Other)
      • Who is in agreement with you on what it means to give each other fish (Willingness to Promote/Formal Agreement)
  • Why You Should Care:
    • Have you wondered how to get more referrals, without you having to do all the promoting yourself? One great way to do is by creating what we at PHB call – Your Own “Promotion Partner” Network, or what other business groups may call creating your own referral or power partners.
    • At PHB, we specialize in helping you figure out who your ideal Promotions Partners would be, and then, fostering strong, win-win relationships with them built on agreements, training, and continual evaluation of how your partnership is working.
  • Refer to:
    • “Promotion Partners” interview series – Josephine “Jos” Hanan, CEO/Founder, JosephineHanan.com
R

Research and Development (R&D)

  • Definition:
    • Is the estimated amount you will need to develop the next stage of your business or your next product
  • Why You Should Care:
    • R&D is necessary for any business to stay relevant in the marketplace. Look at companies like Kodak or Western Union, did they stay relevant in the marketplace? No, two things were lacking, understanding the current trends and the R&D necessary to either make their product relevant or to develop a new product for the market.
  • Refer to:

Revenue Stream

  • Definition:
    • Revenue Stream represents Sales (Revenue), (not profit, which is revenue minus costs) a company generates from each Customer Segment such as Married couples or home owners verses a Vertical such as Real Estate or Construction. It reveals the earning a business makes from all the methods by which sales are made.
      • Customer Segment: Refers to the description of the customer.
      • Vertical: Refers to an Industry
  • Why You Should Care:
    • Additional revenue streams can be key to achieving and/or exceeding your goals. EX: Let’s pretend you’re an insurance agent and only sell life insurance — this may not be a strong enough revenue model to achieve your strategic goals. You may also need to also sell home and auto insurance to have a strong, full-fledged insurance agency with multiple revenue streams.
  • Refer to:
S

Strategic Business Plan

  • Definition:
    • A strategic plan assumes you have worked through the required elements for a full business plan for example: Vision, Mission, Market segment or verticals, Marketing plan/Branding, and Goals and Milestones, etc. Specifically, a strategic business plan is the implementation process of a business plan for execution.
  • Why You Should Care:
    • Strategic business plans are very practical. Sometimes entrepreneurs put their strategic business plan on their office wall. They measure client and vender communication and agreements by their strategic business plan.
    • “It’s important not just to the success of all clients I coach and consult, but personally, I’ve been benefiting from business planning since the 80’s. I was CFO of a construction firm that grew our revenue to over 1m in 4 years. We wouldn’t have gotten where we were without a strategic plan.” – Doreen Milano, CEO, Visions to Excellence
  • Refer to:
    • “Open Your Business Kimono” (Strategic Business Planning) interview – Doreen Milano, CEO, VisionsToExcellence.com
T

2017: THE Year of Women Entrepreneurs

  • Definition:
    • Who said 2017 is THE Year of Women Entrepreneurs (#2017YrofWE)? The answer is that our trail-blazing PHB community did! If we had to wait for someone else to declare it, we’d still be waiting. And women are done WAITING.
      • We are done waiting to step up as leaders in the world.
      • We are done waiting to showcase our accomplishments.
      • We are done waiting to be promoted … and instead, are actively, unapologetically promoting ourselves, our businesses, and each other: Online. Offline. All the Time!
    • 2017 is being called the Year of WE for a reason. Let’s collaborate with, promote, and learn from each other … and all businesses will rise:)
  • Why You Should Care:
    • The Year of Women Entrepreneurs (#2017YrofWE) is creating More buzz = More Interest in all women entrepreneurs’ businesses
    • Perks (google women-owned business contests and certifications)
    • Transform Business Culture: Opportunity to create the culture and policies in your business that you wish you would have had at other companies and be a role model
    • Growth in Sectors Traditionally under-represented – a shout out to our tech sisters/founders, who are increasingly being funded, getting corporate sponsorships, and leading the way
    • Increased support/ role models: Just imagine … youth saying that they want to grow up to be entrepreneurs – and not just any entrepreneurs – but be able to name specific women entrepreneurs to look up to!
  • Refer to:
    • “Your 2017 Marketing Strategy” interview series – Josephine “Jos” Hanan, CEO/Founder, JosephineHanan.com
W

Website conversion

  • Definition:
    • A website conversion, simply put, is “the ability to get your site visitors to do what you want.” – Ako Kitissou
  • Why You Should Care:
    • Understanding how to get more website conversions is really important, because it’s not just about your business having a pretty website. Rather, it’s about making sure your website helps to sell your business as much as you do!  Is your audience clicking where you want them to click and buying what you want them to buy?
    • If you’re not a website expert, it can be hard to figure out how to improve the results you’re getting (or not getting). That’s why PHB is interviewing an expert– and not just any expert – but an expert who specializes in helping small and local business with website conversions!
  • Refer to:
    • “Website Conversions” interview series – Ako Kitissou, Founder and Manager, Leaptera.com 

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